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Express Tribune
18-04-2025
- Business
- Express Tribune
PIA privatisation: fresh bid process approved
The Privatisation Commission is likely to publish a fresh advertisement next week for the divestment of 51 to 100 per cent shares of Pakistan International Airlines Corporation Limited (PIACL). A meeting of the Privatisation Commission Board was held on Thursday, chaired by Commission chairman Muhammad Ali. During the meeting, the board approved the eligibility criteria for interested bidders. In its previous session, the board recommended to the Cabinet Committee on Privatization (CCOP) a transaction structure for the second attempt to privatize PIACL. The structure is based on the sale of 51% to 100% PIACL's share capital, along with management control. The final terms and conditions for the transfer and acquisition of equity stake shall be finalised during the bidding process and included in the bid documents for CCOP's approval. Earlier this month, the country's defence minister announced that the national flag carrier had posted an annual profit for the first time in over two decades, ahead of the government's renewed efforts to privatise the airline. The disclosure was made at a PIA board meeting, the minister said. "PIACL Board today has approved its accounts FY 2024, and after 21 years, it has achieved an operating profit of Rs9.3 billion ($33.14 million) & Net Profit of Rs26.2 billion (after deferred tax adjustment)," Defence and Aviation Minister Khawaja Muhammad Asif said in a post on X, which was confirmed by the airline in a statement. (With input from Reuters)
Arab News
09-04-2025
- Business
- Arab News
Pakistan's national flag carrier posts first profit in 21 years amid privatization push
ISLAMABAD: Pakistan's financially struggling national air carrier has recorded an operational profit of Rs9.3 billion ($33.48 million) for the first time in 21 years, the country's defense minister Khawaja Muhammad Asif said on Tuesday. Pakistan's cash-strapped administration is looking to privatize the debt-ridden Pakistan International Airlines (PIA) to raise funds and overhaul state-owned enterprises as part of a $7 billion International Monetary Fund (IMF) program. However, a previous attempt to offload a 60 percent stake in the airline failed last year after it drew just one bid — well below the asking price — highlighting investor concerns over the carrier's viability. The new development could boost the government's efforts to revive buyer interest. '#PIACL Board today has approved its accounts FY 2024, and after 21 years, it has achieved an operating profit of PKR 9.3 billion & net profit of PKR 26.2 billion [$94.32 million] (after deferred tax adjustment),' Asif said in a post on social media platform X, formerly Twitter. 'People of #Pakistan might have lost hope on 'once a pride of the nation', but with rigorous steps adopted by the GoP, implementing comprehensive reforms entailing cost & workforce rationalization, routes optimization & financial discipline with balance sheet restructuring, PIA is poised to capitalize on financial performance through privatization process,' he added. According to a statement from the airline's spokesperson, the operational margin for 2024 exceeded 12 percent, a performance level the company said matches that of top global carriers. PIA's return to profitability is expected to enhance its market credibility and support the broader economy, it added.
Express Tribune
27-01-2025
- Business
- Express Tribune
Below-expectation results drag down PSX
KARACHI: Pakistan Stock Exchange (PSX) on Monday exhibited bearish activity on the back of a slump in global equities and weak crude oil prices. Adding to the market trouble included the uncertainty surrounding talks between the government and Pakistan Tehreek-e-Insaf (PTI), monetary policy decision by the State Bank of Pakistan (SBP) later in the day and concerns over the proposed Tax Laws Amendment Bill. Despite a promising start, when the KSE-100 index surged to the intra-day high of 716 points, the market reversed course, closing down by 1,360 points, or 1.18%, at 113,520.32. Weaker-than-expected earnings from Mari Petroleum, among other factors, dampened investor sentiment, contributing to the negative momentum. However, despite the downturn, there was cautious optimism among analysts that a potential rate cut could revive interest. Ahsan Mehanti of Arif Habib Corp commented that stocks turned bearish amid a slump in global equities and weak global crude oil prices. He added that uncertainty over the outcome of talks between the government and PTI, the SBP's policy rate decision to be announced later in the day and worries over the proposed Tax Laws Amendment Bill, which restricts non-filers from making stock purchases, played the role of catalysts in the bearish activity. At the close of trading, the benchmark KSE-100 index recorded a decrease of 1,360.16 points, or 1.18%, and settled at 113,520.32. In its review, Topline Securities stated that the market opened on a positive note, with the index touching an impressive intra-day high of 716 points. However, the momentum was short-lived as bears swiftly took charge. The index plunged to the intra-day low of 1,398 points before closing at 113,520, marking a decline of 1,360 points, or 1.18%, it said. The negative trend could largely be attributed to weaker-than-expected financial results of Mari Petroleum, which dampened investor sentiment. The company reported earnings per share (EPS) of Rs9.3, with no cash payout, which came in below market expectations and contributed significantly to the bearish activity, Topline said. The brokerage house said that Pakistan Oilfields declared 2QFY25 results, where the company posted EPS of Rs26.7, taking 1HFY25 earnings to Rs35.7 per share, along with cash dividend of Rs25 per share. JS Global analyst Muhammad Hasan Ather commented that the KSE-100 index saw a significant dip, mainly led by uncertainty about the monetary policy committee decision and a few below-expected results. Despite the downtrend, there was optimism that a substantial rate cut could positively impact market sentiment. Investors were looking forward to the results season, expecting significant dividends from some banks and fertiliser firms, Ather added. Ali Najib of Insight Securities remarked that the PSX resumed the week on a positive note, however, selling headwinds compelled the benchmark index to lose earlier gains. The main culprit behind Monday's pessimism was Mari Energy, which reported EPS of Rs9.3 for 2QFY25, significantly below street expectation of Rs12.5, with no dividend. Post-result announcement, the stock lost more than 8% and pulled the index down by 375 points, Najib observed. Later, he added, the SBP announced a reduction of 100 basis points in its policy rate that reached 12%. Overall trading volumes decreased to 494 million shares compared with Friday's tally of 632 million. Shares of 442 companies were traded. Of these, 97 stocks closed higher, 298 fell and 47 remained unchanged. Sui Southern Gas Company was the volume leader with trading in 51.65 million shares, falling Rs4.39 to close at Rs39.53. It was followed by Cnergyico PK with 50.7 million shares, falling Rs0.14 to close at Rs7.57 and WorldCall Telecom with 29.1 million shares, falling Rs0.06 to close at Rs1.73. Foreign investors bought shares worth Rs385.7 million.
